| Schedule of Income Taxes and Effective Income Tax Rate |
Provision
(benefit) for Income Taxes and Effective Income Tax Rate
Schedule
of Income Taxes and Effective Income Tax Rate
| | |
December
31, 2025 | | |
December
31, 2024 | |
| Federal | |
| | | |
| | |
| Current | |
$ | - | | |
$ | - | |
| Deferred | |
| - | | |
| 2,835,000 | |
| Total
provision (benefit) | |
$ | - | | |
$ | 2,835,000 | |
| | |
| | | |
| | |
| State | |
| | | |
| | |
| Current | |
$ | - | | |
$ | 35,000 | |
| Deferred | |
| - | | |
| - | |
| Total
provision (benefit) | |
$ | - | | |
$ | 35,000 | |
|
| Schedule of Components of Income Tax Expense (Benefit) |
A
reconciliation of the provision for income taxes to the amount computed by applying the statutory federal income tax rate of 21% to income
before provision for income taxes for the years ended December 31, 2025 and 2024, respectively, is approximately as follows:
Schedule
of Components of Income Tax Expense (Benefit)
| | |
December
31, 2025 | | |
December
31, 2024 | |
| Federal income tax expense (benefit)
– 21.00% | |
$ | (7,575,000 | ) | |
$ | (9,044,000 | ) |
| State income tax expense (benefit) – 5.13% -
net of federal effect | |
| (1,220,000 | ) | |
| (1,489,000 | ) |
| Non-deductible items | |
| 111,000 | | |
| 1,392,000 | |
| Other | |
| - | | |
| 163,000 | |
| Subtotal | |
| (8,683,000) | ) | |
| (8,978,000 | ) |
| Change in valuation allowance | |
| 8,683,000 | | |
| 11,848,000 | |
| Income tax (expense) benefit | |
$ | - | | |
$ | (2,870,000 | ) |
| | |
| | | |
| | |
| Effective tax rate | |
| 0.0 | % | |
| -6.7 | % |
|
| Schedule of Deferred Tax Assets and Liabilities |
As
of December 31, 2025 and 2024, respectively, the significant components of deferred tax assets and liabilities are approximately as follows:
Schedule
of Deferred Tax Assets and Liabilities
| | |
December
31, 2025 | | |
December
31, 2024 | |
| Deferred
Tax Assets | |
| | | |
| | |
| Reserve for uncollectible accounts | |
$ | - | | |
$ | - | |
| Investment - Centercom | |
| - | | |
| 45,000 | |
| Stock based compensation | |
| 402,000 | | |
| 204,000 | |
| Lease liabilities | |
| 78,000 | | |
| 144,000 | |
| Intangible assets | |
| (15,000 | ) | |
| 37,000 | |
| Goodwill | |
| 751,000 | | |
| 15,000 | |
| Note receivable impairment | |
| 43,000 | | |
| - | |
| Accrued liabilities | |
| 78,000 | | |
| - | |
| Debt discount amortization | |
| 185,000 | | |
| - | |
| Net operating loss carryforwards | |
| 19,605,000 | | |
| 12,425,000 | |
| Total deferred tax assets | |
| 21,127,000 | | |
| 12,870,000 | |
| Less: valuation allowance | |
| (21,127,000 | ) | |
| (12,638,000 | ) |
| Net deferred tax assets | |
| (116,000 | ) | |
| 232,000 | |
| | |
| | | |
| | |
| Deferred
Tax Liabilities | |
| | | |
| | |
| Depreciation | |
| (40,000 | ) | |
| 89,000 | |
| Right-of-use assets | |
| (76,000 | ) | |
| 143,000 | |
| Net deferred tax liabilities | |
| (116,000 | ) | |
| 232,000 | |
| | |
| | | |
| | |
| Deferred income taxes
- net | |
$ | - | | |
$ | - | |
|